Section 54-A. Withholding of payment of local assistance by the state to counties, cities and villages, in certain cases

1. In  the  event  that
  any county, city or village, subject to the provisions of section ten of
  article  eight of the constitution of this state, levies or causes to be
  levied taxes upon real property in excess of the  limitation  prescribed
  by   or  pursuant  to  such  section,  the  state  comptroller,  upon  a
  determination of the amount thereof as herein provided,  shall  withhold
  local  assistance by the state as defined in section seventy-one of this
  chapter to such county, city or village to the extent  of  such  excess.
  The  state  comptroller  shall give notice in writing by registered mail
  addressed to the chief fiscal officer and to the legislative body of any
  such county, city or village of his determination of the amount of  such
  excess  levy  and  of his intention to withhold such local assistance to
  the extent of such excess, and further requiring such  county,  city  or
  village,  within thirty days from the date of such notice, to show cause
  why such withholding should not be made by filing a  verified  statement
  with  him  setting forth the facts in relation thereto. The comptroller,
  upon receipt of such verified statement, or if no verified statement  is
  filed  within  the  time permitted, then at the expiration of such time,
  shall review his determination and within thirty  days  thereafter  make
  and  file in his office his final determination thereon and cause copies
  thereof to be served by registered mail upon the  chief  fiscal  officer
  and  upon  the  legislative  body  of  such county, city or village. The
  amount finally determined by the state comptroller to be withheld  shall
  be  deducted  only  from  the  next four quarterly instalments due or to
  become due thereafter to such county, city or village  pursuant  to  the
  provisions of section fifty-four of this chapter.
    2.  To  the  extent that any county, city or village from which moneys
  shall have been withheld as provided by this section shall, in the  next
  succeeding fiscal year of such county, city or village, levy or cause to
  be  levied  taxes  upon  real property to an amount less than the amount
  permitted under or pursuant to the provisions of section ten of  article
  eight  of the constitution of this state, such withheld local assistance
  may be paid to such county, city or  village,  to  the  extent  of  such
  decrease,  provided, however, that not more than the amount withheld may
  be so paid. The state comptroller shall make and file his  determination
  certifying  the  amount  of such moneys so withheld to which the county,
  city  or  village  may  be  entitled  under  the  provisions   of   this
  subdivision.  To  the  extent  that such withheld moneys are not paid to
  such county, city or village as herein provided, they shall be  retained
  in  the  general  fund  of the state treasury to the credit of the local
  assistance fund therein, and such county, city or village shall have  no
  further claim to the payment thereof.
    3. The chief fiscal officer of each county, city or village shall, not
  less  than  ten  days prior to the adoption of its budget, file with the
  state comptroller on forms to be furnished by him, a  statement  showing
  the  amount  which such county, city or village may raise by tax on real
  estate under the provisions of sections ten and eleven of article  eight
  of  the  constitution  of  this state and the estimated amount of tax on
  real estate proposed to be levied on account of such  budget,  and  such
  chief fiscal officer shall also within thirty days after the adoption of
  such  budget,  file  with the state comptroller a certified copy of such
  budget, the amount of its tax levy upon real estate on account  of  such
  budget, and such other information as the state comptroller may require.
  Failure  to  comply  with  the  provisions of this subdivision shall not
  invalidate a tax levied by any such county, city or village.